Now that spring is here, more and more buyers are returning to the market, and competition is heating up.
If you wish to purchase a house that you will love, you need more than a simple wish list. You need an intelligent strategy, and that begins with working with a great agent that can help you organize a solid offer.
Here are some main tips that your agent will share with you in helping buyers to stand out (and win) in the current market.
1. Don’t go too low in the price
It is tempting to start with a super low offer in an attempt to save money. But in a competitive spring market, that could be counterproductive. If the price is not reasonable, it could offend the seller and lose to a better offer. As Nerdwallet says:
“If you really want the property, you should avoid offending the seller. Therefore, be careful in presenting your original offer. One of the most obvious risks of making a lowball offer is absolute rejection … As a buyer, you will need to find a balance between making a fair offer and running the risk of losing out on the property.“
Your agent can help you understand local price trends and how a fair but strong offer is seen this season.
2. Consider a climbing clause
If you are concerned about competition offers, a climbing clause can help. If you have a climbing clause and the seller receives another offer, it increases to a certain maximum amount you establish. That way you don’t lose out to another buyer due to a small price difference. Inventopedia explains it like this:
“A climbing clause is a way of automatically bringing an offer to a certain amount, to compete with other offers.”
Work with your agent to decide if this tactic conforms to your situation and budget. Just make sure not to stretch beyond what you really feel comfortable and what the house is likely to appraise for.
If the evaluation is lower than its offer, it is possible that you must compensate for the difference from your pocket. Your agent can help you weigh these risks and determine the best approach to your specific situation.
3. Be intentional about the concessions you ask for
While some concessions could be possible (such as aid with closing costs), too many demands could make the cleaner offer of the buyers more attractive. Like the National Association of Agents (NAR) states:
“There are many factors for discussion in any real estate transaction, from the price to repairs and the date of possession. A real estate professional who represents you needs to assess the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs. . .“
An agent who knows what is working for other buyers in his area can help you prioritize the most important questions and avoid those that could turn off the seller.
4. Consider a timeline that benefits the seller
Sometimes, it’s not just about the price, it’s about time. Does the seller need extra time to move? Or do they want to move as soon as possible? The flexibility here can work in your favor. By adjusting your timeline (if you can), you could stand out against other offers. According to Atlas van Lines:
“Everyone will have a unique timeline depending on the size of the movement, the distance at which personal preferences move. It is important to be flexible and adapt the timeline as necessary to ensure that it assigns enough time for each step.”
Your agent or real estate professional can communicate with the seller’s agent to find out what matters most, including time.
